Car Donation Programs: Donate Your Car to Charity

Doing charity in whichever way possible is always a noble gesture. Usually, the items that people donate to charity consist of old clothes, shoes, mattresses, sometimes even an outdated television or a tape recorder. But do you know that there exist a few car donation programs through which you can actually donate your old car to charity? Naturally, you may ask yourself, "Why would I do that?" or "How do I do that?" or "What is in it for me?". Well, here are the answers to all of your questions.

Why you Should Donate your Old Car
Your old car, just like any other of your personal belongings, is put to use in an appropriate way when you donate it to charity. If your car is in decent working condition, it will either be used by the charity organization itself, or it will be donated to struggling families as well as families affected by natural calamities and in urgent need of help. If your vehicle is not in working condition, it does not matter. It can be auctioned off to other charities that are willing to undertake the necessary repair costs, and use it subsequently. In case the car happens to be beyond repairs, its individual car parts and spares can then be sold to garages and service centers. In this way, by donating your old car you are not only helping out under-privileged families, but also contributing towards recycling and maintaining a clean environment.

How you Can Donate your Old Car
There are over 500 authorized charitable organizations in the U.S, which accept all types of vehicles ranging from bikes, cars, trucks, vans right up to fishing boats, regardless of the condition they are in. All you have to do is simply locate the charity that is nearest to you and get in touch with their officials. After your vehicle has been approved, the charities themselves dispatch tow trucks to your address, pick up your vehicle, and issue a receipt. The process does not involve any towing cost and in most cases, is hassle-free.

What Benefits do you Get Through Car Donation
Though most people do charity out of goodwill and without expecting anything in return, donating a car to charity through an authorized, legal car donation program does entitle the car owner to a few benefits. The most significant advantage lies in the form of tax deductions. As per the revised U.S. Tax laws of 2005, a person who donates his car to a recognized 501 (c) (3) charitable organization is entitled to receive a certain amount of tax deduction, in accordance with the Internal Revenue Services (IRS) regulations. The amount that is waived mainly depends on whether the charity itself uses the car, or whether it auctions it to a third party. Other associated factors are the physical condition of the car and its present resale market value.

Tips for Car Donors

Although donating one's car to charity is a very generous thing to do, one should keep in mind certain guidelines while doing so. Here are some tips for car donors:

• Verify the credentials of the charity before you donate your car. There are a few shady organizations which pretend to be charities but are, in fact, business organizations looking to make profits out of such deals. Be wary of such fraudulent charities.
• Make sure that you receive your car donation receipt and tax deduction certificate as soon as possible. You are entitled to a tax waiver only if you have a valid certificate, so make sure that you obtain it in time.
• Familiarize yourself with the IRS laws and regulations. It will help you to understand the tax benefits that you can avail of, in a better way.
• Even after donating your car, it is advisable to keep a photocopy of your car documents and registration details. You may require them in the future.

Donating a used car to charity is definitely a kindhearted thing to do. You just need to make sure that you donate it to the right organization so as to avoid disappointment at a later stage.